Japan's NEC buys Australian technology business of CSG

Japanese technology giant NEC Corporation will acquire two technology solutions units of CSG Limited, an Australian ICT company, for approximately A$260 million, further expanding its business in the Asia Pacific region.

The acquired business provides end-to-end IT solutions and services, including managed services, enterprise services and strategic consulting, NEC said in a statement.

Darwin, Northern Territory-based CSG operates two divisions; technology solutions, and print services.

Through the sale of its technology services, the struggling ICT service provider will gain a base consideration of A$227.5 million and a potential earn-out payment of up to A$32.5 million.

In a separate statement, CSG chairman, Josef Czyzewski said, ''The board believes this transaction is in the best interests of the company and its shareholders. The proceeds from the sale will enable us to pay down debt and return capital to our shareholders.''

CSG said that the net proceeds from the deal will be approximately A$190 million.